Argentinian Correa will join from San Lorenzo pending the successful completion of a medical and has signed a five-year deal with the Spanish champions.
Atletico also enjoyed an excellent season on the continental front, only losing Saturday's UEFA Champions League final to city rivals Real Madrid after extra time.
Correa is highly rated and has reportedly cost the Madrid club a fee in the region of €8 million.
An Atletico statement read: "Our club has reached an agreement with San Lorenzo de Almagro for the transfer of the young Argentinian talent, pending the corresponding medical check-up.
"Afterwards, the forward will commit to our club for five seasons.
"Angel Correa arrived at San Lorenzo when he was only 12 years old, after having been in the Alliance Sport and Tiro clubs, making his debut in the top flight last year.
"The young footballer is noted for his speed, talent and ability, which have led him to be one of the offensive leaders of his team, with which he's scored eight goals in this campaign."
In addition to playing in the Argentinian Primera Division, Correa also has experience in both the Copa de Libertadores and Copa Sudamericana despite his young age.
His arrival adds depth to the forward options available to coach Diego Simeone, although they could lose in-demand Diego Costa in the close-season.
The striker, who scored 36 goals in all competitions last season, has been regularly linked with a switch to Premier League outfit Chelsea.
‘He instantly popped into our ratings as one of the best U21 midfielders in Europe. The impressive thing is Slot has made him into more of a no.6' Inside Ryan Gravenberch's transformation at Liverpool
‘I don’t think Liverpool would look at Ollie Watkins, a striker isn’t a pressing issue for them – it’s Arsenal who need one’ Former Reds star explains why his old club don’t need an out-and-out forward this summer
